NZS Capital, LLC, an investment management company, released its "NZS Growth Equity Strategy" second-quarter 2026 investor letter. A copy of the letter can be downloaded here. Equity markets delivered a strong performance in the second quarter of 2026, driven by demand for AI infrastructure, geopolitical stabilization, and positive earnings reports. The portfolio achieved a gross return of +24.96% and a net return of +24.76%, significantly outperforming the +14.79% return for the Morningstar Global Target Market Exposure Index. Overweight in Semiconductors, stock selection in areas like Software and Industrials, and zero exposure to Energy contributed to the Strategy's outperformance in the quarter. In addition, please check the Strategy's top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, NZS Growth Equity Strategy highlighted Arm Holdings plc (NASDAQ:ARM) as a notable contributor. Arm Holdings plc (NASDAQ:ARM) is a UK-based technology company that develops and licenses central processing unit designs and related technologies for semiconductor companies and original equipment manufacturers. On July 20, 2026, Arm Holdings plc (NASDAQ:ARM) closed at $269.61 per share. One-month return of Arm Holdings plc (NASDAQ:ARM) was -26.41%, and its shares gained 72.27% over the past 52 weeks. Arm Holdings plc (NASDAQ:ARM) has a market capitalization of $286.87 billion.
NZS Growth Equity Strategy stated the following regarding Arm Holdings plc (NASDAQ:ARM) in its Q2 2026 investor update:
"Information Technology contributed the most to absolute returns, though Industrials and Communication Services also outperformed. Each of the top-five individual contributors to absolute returns were in the Semiconductor industry and, more importantly, in the AI infrastructure ecosystem. In addition to the improving outlook reflected in chips broadly, Arm Holdings plc (NASDAQ:ARM) shares were further lifted by the company's announced plan to develop its first in house chip, a CPU for AI workloads."
Arm Holdings plc (NASDAQ:ARM) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 46 hedge fund portfolios held Arm Holdings plc (NASDAQ:ARM) at the end of the first quarter, compared to 33 in the previous quarter. Arm Holdings plc (NASDAQ:ARM) reported record revenue of $1.49 billion in the fourth quarter of fiscal 2026, up 20% year-over-year. While we acknowledge the potential of Arm Holdings plc (NASDAQ:ARM) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
Source: Yahoo Finance Top News — This article was automatically imported from the source. Read full article at original source →
